Kuwait's Burgan completes $356m bond issue

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Kuwait-based Burgan Bank, which announced on Saturday that it had sealed a deal to acquire Eurobank Tekfen, the Turkish arm of EFG Eurobank, has completed a KD100m ($356m) bond issue.

The ten-year subordinated LT2 bond, callable after year five upon receipt of regulatory approvals, was issued in fixed and floating rate tranches.

The proceeds of the bond will be used to support the bank's capital after acquiring EuroBank Tekfen, it said in a statement.

It added that Burgan Bank would continue its strategy of raising funds from the debt capital markets to strengthen its capital base, diversify its investor base and provide financial flexibility to the bank.

The bank last went to market in September 2010 raising a $400m, 10-year bond.

Burgan Bank said on Saturday that the Eurobank Tekfen deal was worth KD98.88m ($351m).

Majed Essa Al Ajeel, Burgan Bank chairman, said: "This is a landmark transaction, not only for Burgan Bank but also for the development of the local debt capital markets by issuing the bond with the largest and longest tenor to date.

"Since the onset of the global economic crisis, Kuwait's bond market has been starved of quality bond offerings, so it is crucial that local banks help to stimulate supply.

"We strongly believe that a fully functioning and vibrant local bond market is a key element in the development of Kuwait's private sector."

KIPCO Asset Management Company (KAMCO) and Watani Investment Company (NBK Capital) jointly managed the bond issuance.

Related:
Companies

Market Performance

Burgan Bank
530.0
0.0 0.0 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

1
The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew